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How we increased margins and maximised profitability for a UK accountancy practice

How we increased margins and maximised profitability for a UK accountancy practice

Overview:

The client is a medium sized accountancy practice providing bespoke accounting, finance and tax related services to circa 1000 clients. Their clients are mainly from small and medium-sized businesses and contractors in IT, banking, business and finance related industries. They also offer insurance, tax planning and wealth management services by partnering with various industry leading groups. Most of their practice management and tax filing work is automated and they use various software solutions for different accounting activities.

Business challenge:

Our client operates from an office in central London and their main concern was on practice growth and space management. They wanted their staff to add value to their current clients and to grow the business organically through cross selling and referrals but they were already unable to meet deadlines and produce accounts on schedule during peak periods to an ever expanding client base. The physical office limitations dictating the inability to expand and hire more staff was having a direct adverse impact on their business and revenue generation. They needed to identify a solution which would enable them to achieve their ambitions while minimising expenditure and at the same time make their practice more efficient.

How QX helped:

We undertook and in depth study of their systems and document procedures and produced a detailed plan outlining all the tasks. After careful consideration the client outsourced their complete accounting process to QX Accounting Services. This decision firstly allowed their staff to concentrate on business development and client retention activities; and secondly, provided the additional resources they required at a lower cost base and without the physical office space and associated overheads. The transition focused on a number of areas which included:

Establishing processes for various accounting related tasks

Streamlining the accounting process with new process controls for seamless accounting

Assisting the client with internal and external audits of accounts

Created a manual detailing all processes for training and process improvements

Setting up KRA and KPI for individuals and teams to achieve optimum quality and efficiency

Filing VAT and self-assessment tax returns to HMRC on behalf of the client

Preparing statutory and management accounts on a monthly basis

Undertaking bookkeeping, payroll, final accounts, MIS reporting and various other accounting related tasks.

Services delivered:

QX Accounting Services not only delivered a service which enabled the client to meet the previously missed deadlines but also streamlined the process and work flow which has improved profitability.

Seamless integration of all the accounting systems for better management of workflow

We manage their entire contractor base for management accounts and filing tax returns

Keeping business and contractor clients up to date with latest changes in the compliance and latest HMRC legislation changes

Provided a committed and dynamic team for industry leading support

Achieved cost saving in excess of 50% against their earlier accounting costs

Developed a reporting structure for timely delivery of data and reports